System for Shippers Collaboration

Abstract

Shippers are looking to reduce their costs and increase their performance and competitiveness. They realized that even competitors can be potential collaborative partners. For carriers, one important consideration is the reduction of asset repositioning. However, carriers will often make empty movements to reposition their trucks. Carriers may generate demand for this capacity by offering service substantially below the market price. Shippers on the other hand, decide when to buy transportation services for their freight. This action allocates shipments to the otherwise unused capacity thus reducing the network's empty movements. It is necessary to distribute the freights in the available routes, this is a multiple knapsack problem. Based on the given lanes, the available routes are determined in a combinatorial approach. The problem is solved using a branch and cut method. The proposed method was implemented in a system where shippers can interact via internet, the costs of each shipper remains hidden. Shippers can publish their available freights, and they search for shippers that can collaborate by reducing empty movements. A result is shown demonstrating the usability of the system.